Presstek in takeover by private equity firm

- Presstek added to investment portfolio including Mark Andy

 

- AIP to help Presstek's product portfolio achieve maximum potential

 

Digital offset press manufacturer Presstek has entered into a definitive merger agreement that will see it acquired by MAI Holdings, an entity affiliated with American Industrial Partners Capital Fund IV (AIP).

 

AIP is an operationally focused private equity investment firm that applies a collaborative approach with management in building and improving middle-market companies. Its portfolio includes fellow press manufacturer Mark Andy.

 

The agreement has been unanimously approved by the Presstek board of directors, although it remains subject to the approval of shareholders and other customary closing conditions.

 

The deal is expected to close during the fourth quarter of 2012. 

 

In connection with the transaction, AIP has obtained the agreement of Presstek’s largest shareholder, IAT Reinsurance Company, and its affiliates, which own 24.5 percent of the outstanding common stock, to vote in favor of the merger at the special shareholders meeting to be called for that purpose, subject to certain conditions.

 

Stan Freimuth (pictured, top), Presstek’s chairman, president and chief executive officer, said: ‘We are excited to combine the financial resources of AIP with the strong product portfolio of Presstek. 

 

‘We believe that this combination will help to fuel the growth of the company, which has been challenging over the past few years as a result of the worldwide economic downturn. 

 

‘AIP is no stranger to our industry. One of its portfolio companies, Mark Andy, is the world's leading designer of narrow and mid-web flexographic equipment and after-market products serving the label, packaging and specialty printing markets.

 

‘We look forward to working with Mark Andy in areas where it makes sense for both companies.’

 

AIP’s Richard Hoffman said: ‘Presstek represents a very attractive portfolio investment for AIP. 

 

‘The company has best-in-class technologies, headlined by its highly efficient and versatile 75DI digital offset printing press, and we look forward to partnering with Presstek’s management team to help the company and its product portfolio achieve their full potential.’

 

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